Finance and retirement #9

Different Types of Investments

IMG_20160503_103045767 This is a pic of an investment that I have made in some old Mexican currency. Hope one day it pays off nicely.

There are many different types of investments one can make but the important thing is to make sure you know what your getting into and that your comfortable with the amount you invest. Whether the investment be stocks, bonds, mutual funds, real estate, currency, silver or gold do your homework! Be sure you never invest more than you can afford to lose, stay with in your comfort zone. I have wrapped up to much money in an investment before and ended up needing the cash and that’s not a good predicament to put yourself in. To read up on different types of investments click on this link.

Stay Solvent

Staying solvent means keeping enough money in the bank to cover yourself financially  just in case something happens. The rule of thumb is to keep at least 2 to 6 months of monthly salary in savings. This means if you get fired or sick you will be able to pay your bills and cover monthly expenses. A person should never invest this portion of their savings. This is also called being liquid. Always cover your back with enough in savings if you need it.

Make an Investment and let it ride.

What I mean by this is maybe check on your investment once a month, anymore than that and you might start to get worked up for no reason. The value of investments fluctuate and there is never a for sure thing when it comes to investing. Just remember you did your homework on the investment and you made a solid decision. This is why one should never invest what they are not comfortable losing. If you get in over your head a person is sure to lose sleep and might get themselves in trouble financially. Most of all have fun and take your time, never rush into an investment.

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